XML 49 R33.htm IDEA: XBRL DOCUMENT

Loans and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2018

The various categories of loans are summarized as follows:



(In thousands)	June 30, 2018		December 31, 2017

Consumer:
Credit cards	$	180,352	$	185,422
Other consumer	277,330		280,094
Total consumer	457,682		465,516
Real Estate:
Construction	967,720		614,155
Single family residential	1,314,787		1,094,633
Other commercial	2,816,420		2,530,824
Total real estate	5,098,927		4,239,612
Commercial:
Commercial	1,237,910		825,217
Agricultural	187,006		148,302
Total commercial	1,424,916		973,519
Other	151,936		26,962
Loans	7,133,461		5,705,609
Loans acquired, net of discount and allowance ⁽¹⁾	4,232,434		5,074,076
Total loans	$	11,365,895	$	10,779,685

_____________________________


⁽¹⁾	See Note 6, Loans Acquired, for segregation of loans acquired by loan class.

Changes in the carrying amount of the accretable yield for all purchased impaired loans were as follows for the three and six months ended June 30, 2018 and 2017.



	Three Months Ended June 30, 2018						Six Months Ended June 30, 2018
(In thousands)	Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans
Beginning balance	$	1,369		$	17,605		$	620		$	17,116
Additions	—			—			—			—
Accretable yield adjustments	44			—			1,178			—
Accretion	(31		)	31			(416		)	416
Payments and other reductions, net	—			(3,641		)	—			(3,537		)
Balance, ending	$	1,382		$	13,995		$	1,382		$	13,995



	Three Months Ended June 30, 2017						Six Months Ended June 30, 2017
(In thousands)	Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans
Beginning balance	$	1,217		$	8,695		$	1,655		$	17,802
Additions	—			2,388			—			2,388
Accretable yield adjustments	1,418			—			2,646			—
Accretion	(1,869		)	1,869			(3,535		)	3,535
Payments and other reductions, net	—			(4,504		)	—			(15,277		)
Balance, ending	$	766		$	8,448		$	766		$	8,448

The impact of these adjustments on the Company’s financial results for the three and six months ended June 30, 2018 and 2017 is shown below:



	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2018		2017		2018		2017

Impact on net interest income and pre-tax income	$	26	$	1,388	$	476	$	2,572

Impact, net of taxes	$	19	$	844	$	350	$	1,563

The following table reflects the carrying value of all loans acquired as of June 30, 2018 and December 31, 2017:



	Loans Acquired
(In thousands)	June 30, 2018		December 31, 2017
Consumer:
Other consumer	$	31,651	$	51,467
Real estate:
Construction	521,321		637,032
Single family residential	671,602		793,228
Other commercial	2,240,578		2,387,777
Total real estate	3,433,501		3,818,037
Commercial:
Commercial	764,473		995,587
Agricultural	2,809		66,576
Total commercial	767,282		1,062,163
Other	—		142,409
Total loans acquired ⁽¹⁾	$	4,232,434	$	5,074,076

_____________________________________________________________________________________


(1)	Loans acquired are reported net of a $2,044,000 and $418,000 allowance at June 30, 2018 and December 31, 2017, respectively.

Nonaccrual Loans

Nonaccrual loans, excluding loans acquired, segregated by class of loans, are as follows:



(In thousands)	June 30, 2018		December 31, 2017

Consumer:
Credit cards	$	238	$	170
Other consumer	3,804		4,605
Total consumer	4,042		4,775
Real estate:
Construction	1,764		2,242
Single family residential	15,415		13,431
Other commercial	11,911		16,054
Total real estate	29,090		31,727
Commercial:
Commercial	9,195		6,980
Agricultural	2,221		2,160
Total commercial	11,416		9,140
Total	$	44,548	$	45,642

Nonaccrual loans acquired, excluding purchased credit impaired loans accounted for under ASC Topic 310-30, segregated by class of loans, are as follows (see Note 5, Loans and Allowance for Loan Losses, for discussion of nonaccrual loans):



(In thousands)	June 30, 2018		December 31, 2017

Consumer:
Other consumer	$	362	$	334
Real estate:
Construction	258		1,767
Single family residential	8,784		12,151
Other commercial	22,944		7,401
Total real estate	31,986		21,319
Commercial:
Commercial	4,680		1,748
Agricultural	32		84
Total commercial	4,712		1,832
Total	$	37,060	$	23,485

Past Due Loans

An age analysis of past due loans, excluding loans acquired, segregated by class of loans, is as follows:



(In thousands)	Gross 30-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans		90 Days Past Due & Accruing

June 30, 2018
Consumer:
Credit cards	$	642	$	383	$	1,025	$	179,327	$	180,352	$	145
Other consumer	3,026		2,363		5,389		271,941		277,330		37
Total consumer	3,668		2,746		6,414		451,268		457,682		182
Real estate:
Construction	515		821		1,336		966,384		967,720		—
Single family residential	6,187		7,898		14,085		1,300,702		1,314,787		121
Other commercial	1,862		6,080		7,942		2,808,478		2,816,420		—
Total real estate	8,564		14,799		23,363		5,075,564		5,098,927		121
Commercial:
Commercial	3,995		4,548		8,543		1,229,367		1,237,910		—
Agricultural	192		2,004		2,196		184,810		187,006		—
Total commercial	4,187		6,552		10,739		1,414,177		1,424,916		—
Other	—		—		—		151,936		151,936		—
Total	$	16,419	$	24,097	$	40,516	$	7,092,945	$	7,133,461	$	303

December 31, 2017
Consumer:
Credit cards	$	707	$	672	$	1,379	$	184,043	$	185,422	$	332
Other consumer	5,009		3,298		8,307		271,787		280,094		10
Total consumer	5,716		3,970		9,686		455,830		465,516		342
Real estate:
Construction	411		1,210		1,621		612,534		614,155		—
Single family residential	8,071		6,460		14,531		1,080,102		1,094,633		1
Other commercial	2,388		8,031		10,419		2,520,405		2,530,824		—
Total real estate	10,870		15,701		26,571		4,213,041		4,239,612		1
Commercial:
Commercial	1,523		6,125		7,648		817,569		825,217		—
Agricultural	50		2,120		2,170		146,132		148,302		—
Total commercial	1,573		8,245		9,818		963,701		973,519		—
Other	—		—		—		26,962		26,962		—
Total	$	18,159	$	27,916	$	46,075	$	5,659,534	$	5,705,609	$	343

An age analysis of past due loans acquired segregated by class of loans, is as follows (see Note 5, Loans and Allowance for Loan Losses, for discussion of past due loans):



(In thousands)	Gross 30-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans		90 Days Past Due & Accruing

June 30, 2018
Consumer:
Other consumer	$	347	$	249	$	596	$	31,055	$	31,651	$	—
Real estate:
Construction	645		1,020		1,665		519,656		521,321		—
Single family residential	3,576		7,410		10,986		660,616		671,602		1,165
Other commercial	4,801		18,947		23,748		2,216,830		2,240,578		—
Total real estate	9,022		27,377		36,399		3,397,102		3,433,501		1,165
Commercial:
Commercial	3,675		7,966		11,641		752,832		764,473		762
Agricultural	35		—		35		2,774		2,809		—
Total commercial	3,710		7,966		11,676		755,606		767,282		762

Total	$	13,079	$	35,592	$	48,671	$	4,183,763	$	4,232,434	$	1,927

December 31, 2017
Consumer:
Other consumer	$	889	$	260	$	1,149	$	50,318	$	51,467	$	108
Real estate:
Construction	2,577		1,448		4,025		633,007		637,032		279
Single family residential	12,936		3,302		16,238		776,990		793,228		126
Other commercial	17,176		5,647		22,823		2,364,954		2,387,777		2,565
Total real estate	32,689		10,397		43,086		3,774,951		3,818,037		2,970
Commercial:
Commercial	2,344		1,039		3,383		992,204		995,587		67
Agricultural	51		—		51		66,525		66,576		—
Total commercial	2,395		1,039		3,434		1,058,729		1,062,163		67

Other	15		—		15		142,394		142,409		—
Total	$	35,988	$	11,696	$	47,684	$	5,026,392	$	5,074,076	$	3,145

Impaired Loans

Impaired loans, net of government guarantees and excluding loans acquired, segregated by class of loans, are as follows:



(In thousands)	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Investment in Impaired Loans		Interest Income Recognized		Average Investment in Impaired Loans		Interest Income Recognized
June 30, 2018											Three Months Ended June 30, 2018				Six Months Ended June 30, 2018
Consumer:
Credit cards	$	238	$	238	$	—	$	238	$	—	$	204	$	10	$	236	$	25
Other consumer	3,981		3,804		—		3,804		—		4,205		33		4,373		67
Total consumer	4,219		4,042		—		4,042		—		4,409		43		4,609		92
Real estate:
Construction	1,825		1,136		396		1,532		253		1,887		13		1,899		29
Single family residential	16,430		14,919		496		15,415		36		14,423		118		14,154		218
Other commercial	17,762		6,376		4,816		11,192		138		13,528		104		14,588		224
Total real estate	36,017		22,431		5,708		28,139		427		29,838		235		30,641		471
Commercial:
Commercial	9,839		7,228		605		7,833		18		7,204		61		7,428		114
Agricultural	3,377		1,249		—		1,249		—		1,142		11		1,474		23
Total commercial	13,216		8,477		605		9,082		18		8,346		72		8,902		137
Total	$	53,452	$	34,950	$	6,313	$	41,263	$	445	$	42,593	$	350	$	44,152	$	700



December 31, 2017											Three Months Ended June 30, 2017				Six Months Ended June 30, 2017
Consumer:
Credit cards	$	170	$	170	$	—	$	170	$	—	$	261	$	6	$	298	$	11
Other consumer	4,755		4,605		—		4,605		—		2,581		17		2,321		31
Total consumer	4,925		4,775		—		4,775		—		2,842		23		2,619		42
Real estate:
Construction	2,522		1,347		895		2,242		249		2,748		21		2,969		39
Single family residential	14,347		12,725		706		13,431		53		12,837		90		12,686		167
Other commercial	22,308		6,732		9,133		15,865		36		22,402		138		19,670		258
Total real estate	39,177		20,804		10,734		31,538		338		37,987		249		35,325		464
Commercial:
Commercial	9,954		4,306		2,269		6,575		—		14,275		91		12,952		170
Agricultural	3,278		1,035		—		1,035		—		2,152		13		1,840		24
Total commercial	13,232		5,341		2,269		7,610		—		16,427		104		14,792		194
Total	$	57,334	$	30,920	$	13,003	$	43,923	$	338	$	57,256	$	376	$	52,736	$	700

Troubled Debt Restructuring

The following table presents loans that were restructured as TDRs during the six months ended June 30, 2018 and the three and six months ended June 30, 2017, excluding loans acquired, segregated by class of loans. There were no loans restructured as TDRs during the three months ended June 30, 2018.



						Modification Type
(Dollars in thousands)	Number of Loans	Balance Prior to TDR		Balance at June 30,		Change in Maturity Date		Change in Rate		Financial Impact on Date of Restructure
Three Months Ended June 30, 2017
Commercial:
Commercial	4	$	41	$	39	$	—	$	39	$	—
Total commercial	4	41		39		—		39		—
Total	4	$	41	$	39	$	—	$	39	$	—

Six Months Ended June 30, 2018
Consumer:
Other consumer	1	$	91	$	91	$	91	$	—	$	—
Total consumer	1	91		91		91		—		—
Real estate:
Single-family residential	1	61		62		62		—		—
Total real estate	1	61		62		62		—		—
Total	2	$	152	$	153	$	153	$	—	$	—

Six Months Ended June 30, 2017
Real estate:
Construction	1	$	456	$	456	$	456	$	—	$	—
Other commercial	2	7,362		7,362		7,362		—		33
Total real estate	3	7,818		7,818		7,818		—		33
Commercial:
Commercial	9	811		799		760		39		—
Total commercial	9	811		799		760		39		—
Total	12	$	8,629	$	8,617	$	8,578	$	39	$	33

The following table presents a summary of troubled debt restructurings, excluding loans acquired, segregated by class of loans.



	Accruing TDR Loans			Nonaccrual TDR Loans			Total TDR Loans
(Dollars in thousands)	Number	Balance		Number	Balance		Number	Balance
June 30, 2018
Consumer:
Other consumer	—	$	—	1	$	91	1	$	91
Total consumer	—	—		1	91		1	91
Real estate:
Construction	1	396		—	—		1	396
Single-family residential	11	734		6	233		17	967
Other commercial	6	3,751		2	3,411		8	7,162
Total real estate	18	4,881		8	3,644		26	8,525
Commercial:
Commercial	5	588		5	2,632		10	3,220
Total commercial	5	588		5	2,632		10	3,220
Total	23	$	5,469	14	$	6,367	37	$	11,836

December 31, 2017
Real estate:
Construction	—	$	—	1	$	420	1	$	420
Single-family residential	4	141		15	954		19	1,095
Other commercial	4	4,322		5	3,712		9	8,034
Total real estate	8	4,463		21	5,086		29	9,549
Commercial:
Commercial	5	2,644		6	745		11	3,389
Total commercial	5	2,644		6	745		11	3,389
Total	13	$	7,107	27	$	5,831	40	$	12,938

Loans by Credit Risk Ratings

The following table presents a summary of loans by credit risk rating as of June 30, 2018 and December 31, 2017, segregated by class of loans. Loans accounted for under ASC Topic 310-30 are all included in Risk Rate 1-4 in this table.



(In thousands)	Risk Rate 1-4		Risk Rate 5		Risk Rate 6		Risk Rate 7		Risk Rate 8		Total
June 30, 2018
Consumer:
Credit cards	$	179,969	$	—	$	383	$	—	$	—	$	180,352
Other consumer	273,345		—		3,985		—		—		277,330
Total consumer	453,314		—		4,368		—		—		457,682
Real estate:
Construction	960,791		2,314		4,599		16		—		967,720
Single family residential	1,287,314		1,711		25,544		218		—		1,314,787
Other commercial	2,780,597		8,620		27,203		—		—		2,816,420
Total real estate	5,028,702		12,645		57,346		234		—		5,098,927
Commercial:
Commercial	1,199,553		12,803		25,554		—		—		1,237,910
Agricultural	184,228		155		2,600		23		—		187,006
Total commercial	1,383,781		12,958		28,154		23		—		1,424,916
Other	151,936		—		—		—		—		151,936
Loans acquired	4,096,419		51,985		83,657		373		—		4,232,434
Total	$	11,114,152	$	77,588	$	173,525	$	630	$	—	$	11,365,895



(In thousands)	Risk Rate 1-4		Risk Rate 5		Risk Rate 6		Risk Rate 7		Risk Rate 8		Total
December 31, 2017
Consumer:
Credit cards	$	184,920	$	—	$	502	$	—	$	—	$	185,422
Other consumer	275,160		—		4,934		—		—		280,094
Total consumer	460,080		—		5,436		—		—		465,516
Real estate:
Construction	603,126		5,795		5,218		16		—		614,155
Single family residential	1,066,902		3,954		23,490		287		—		1,094,633
Other commercial	2,480,293		19,581		30,950		—		—		2,530,824
Total real estate	4,150,321		29,330		59,658		303		—		4,239,612
Commercial:
Commercial	736,377		74,254		14,402		50		134		825,217
Agricultural	146,065		24		2,190		23		—		148,302
Total commercial	882,442		74,278		16,592		73		134		973,519
Other	26,962		—		—		—		—		26,962
Loans acquired	4,918,570		62,128		93,378		—		—		5,074,076
Total	$	10,438,375	$	165,736	$	175,064	$	376	$	134	$	10,779,685

The following table presents a summary of loans acquired by credit risk rating, segregated by class of loans (see Note 5, Loans and Allowance for Loan Losses, for discussion of loan risk rating). Loans accounted for under ASC Topic 310-30 are all included in Risk Rate 1-4 in this table.



(In thousands)	Risk Rate 1-4		Risk Rate 5		Risk Rate 6		Risk Rate 7		Risk Rate 8		Total

June 30, 2018
Consumer:
Other consumer	$	30,912	$	10	$	729	$	—	$	—	$	31,651
Real estate:
Construction	500,741		19,624		956		—		—		521,321
Single family residential	653,816		1,962		15,451		373		—		671,602
Other commercial	2,190,767		11,345		38,466		—		—		2,240,578
Total real estate	3,345,324		32,931		54,873		373		—		3,433,501
Commercial:
Commercial	717,441		19,044		27,988		—		—		764,473
Agricultural	2,742		—		67		—		—		2,809
Total commercial	720,183		19,044		28,055		—		—		767,282

Total	$	4,096,419	$	51,985	$	83,657	$	373	$	—	$	4,232,434

December 31, 2017
Consumer:
Other consumer	$	50,625	$	21	$	821	$	—	$	—	$	51,467
Real estate:
Construction	604,796		30,524		1,712		—		—		637,032
Single family residential	770,954		2,618		19,656		—		—		793,228
Other commercial	2,337,097		15,064		35,616		—		—		2,387,777
Total real estate	3,712,847		48,206		56,984		—		—		3,818,037
Commercial:
Commercial	946,322		13,901		35,364		—		—		995,587
Agricultural	66,367		—		209		—		—		66,576
Total commercial	1,012,689		13,901		35,573		—		—		1,062,163

Other	142,409		—		—		—		—		142,409
Total	$	4,918,570	$	62,128	$	93,378	$	—	$	—	$	5,074,076

Allowance for Loan Losses

The following table details activity in the allowance for loan losses by portfolio segment for legacy loans for the three and six months ended June 30, 2018. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.



(In thousands)	Commercial			Real Estate			Credit Card			Other Consumer and Other			Total
Three Months Ended June 30, 2018
Balance, beginning of period ⁽²⁾	$	9,601		$	30,414		$	3,799		$	3,393		$	47,207
Provision for loan losses ⁽¹⁾	6,897			(1,461		)	749			1,079			7,264
Charge-offs	(790		)	(161		)	(1,012		)	(1,366		)	(3,329		)
Recoveries	59			112			286			133			590
Net charge-offs	(731		)	(49		)	(726		)	(1,233		)	(2,739		)
Balance, June 30, 2018 ⁽²⁾	$	15,767		$	28,904		$	3,822		$	3,239		$	51,732

Six Months Ended June 30, 2018
Balance, beginning of period ⁽²⁾	$	7,007		$	27,281		$	3,784		$	3,596		$	41,668
Provision for loan losses ⁽¹⁾	11,183			1,825			1,500			1,838			16,346
Charge-offs	(2,551		)	(616		)	(2,011		)	(2,422		)	(7,600		)
Recoveries	128			414			549			227			1,318
Net charge-offs	(2,423		)	(202		)	(1,462		)	(2,195		)	(6,282		)
Balance, June 30, 2018 ⁽²⁾	$	15,767		$	28,904		$	3,822		$	3,239		$	51,732

Period-end amount allocated to:
Loans individually evaluated for impairment	$	18		$	427		$	—		$	—		$	445
Loans collectively evaluated for impairment	15,749			28,477			3,822			3,239			51,287
Balance, June 30, 2018 ⁽²⁾	$	15,767		$	28,904		$	3,822		$	3,239		$	51,732

______________________

(1)

Provision for loan losses of $1,769,000 and $1,837,000 attributable to loans acquired was excluded from this table for the three and six months ended June 30, 2018, respectively (total provision for loan losses for the three and six months ended June 30, 2018 was $9,033,000 and $18,183,000). There were $132,000 and $211,000 in charge-offs for loans acquired during the three and six months ended June 30, 2018, respectively, resulting in an ending balance in the allowance related to loans acquired of $2,044,000.

(2)

Allowance for loan losses at June 30, 2018 includes $2,044,000 allowance for loans acquired (not shown in the table above). Allowance for loan losses at March 31, 2018 and December 31, 2017 includes $407,000 and $418,000, respectively, of allowance for loans acquired (not shown in the table above). The total allowance for loan losses at June 30, 2018 was $53,776,000 and total allowance for loan losses at March 31, 2018 and December 31, 2017 was $47,614,000 and $42,086,000, respectively.

The Company’s recorded investment in loans, excluding loans acquired, related to each balance in the allowance for loan losses by portfolio segment on the basis of the Company’s impairment methodology was as follows:



(In thousands)	Commercial		Real Estate		Credit Card		Other Consumer and Other		Total
June 30, 2018
Loans individually evaluated for impairment	$	9,082	$	28,139	$	238	$	3,804	$	41,263
Loans collectively evaluated for impairment	1,415,834		5,070,788		180,114		425,462		7,092,198
Balance, end of period	$	1,424,916	$	5,098,927	$	180,352	$	429,266	$	7,133,461

December 31, 2017
Loans individually evaluated for impairment	$	7,610	$	31,538	$	170	$	4,605	$	43,923
Loans collectively evaluated for impairment	965,909		4,208,074		185,252		302,451		5,661,686
Balance, end of period	$	973,519	$	4,239,612	$	185,422	$	307,056	$	5,705,609

Activity in the allowance for loan losses for the three and six months ended June 30, 2017 was as follows:



(In thousands)	Commercial			Real Estate			Credit Card			Other Consumer and Other			Total
Three Months Ended June 30, 2017
Balance, beginning of period ⁽⁴⁾	$	8,173		$	22,253		$	3,729		$	3,710		$	37,865
Provision for loan losses ⁽³⁾	249			4,974			649			436			6,308
Charge-offs	(349		)	(1,712		)	(901		)	(993		)	(3,955		)
Recoveries	32			216			277			636			1,161
Net charge-offs	(317		)	(1,496		)	(624		)	(357		)	(2,794		)
Balance, June 30, 2017 ⁽⁴⁾	$	8,105		$	25,731		$	3,754		$	3,789		$	41,379

Six Months Ended June 30, 2017
Balance, beginning of period ⁽⁴⁾	$	7,739		$	21,817		$	3,779		$	2,951		$	36,286
Provision for loan losses ⁽³⁾	945			5,834			1,407			1,679			9,865
Charge-offs	(641		)	(2,368		)	(1,945		)	(2,167		)	(7,121		)
Recoveries	62			448			513			1,326			2,349
Net charge-offs	(579		)	(1,920		)	(1,432		)	(841		)	(4,772		)
Balance, June 30, 2017 ⁽⁴⁾	$	8,105		$	25,731		$	3,754		$	3,789		$	41,379

Period-end amount allocated to:
Loans individually evaluated for impairment	$	3,636		$	1,888		$	—		$	—		$	5,524
Loans collectively evaluated for impairment	4,469			23,843			3,754			3,789			35,855
Balance, June 30, 2017 ⁽⁴⁾	$	8,105		$	25,731		$	3,754		$	3,789		$	41,379

Period-end amount allocated to:
Loans individually evaluated for impairment	$	—		$	338		$	—		$	—		$	338
Loans collectively evaluated for impairment	7,007			26,943			3,784			3,596			41,330
Balance, December 31, 2017⁽⁵⁾	$	7,007		$	27,281		$	3,784		$	3,596		$	41,668

______________________

(3)

Provision for loan losses of $714,000 and $1,464,000 attributable to loans acquired was excluded from this table for the three and six months ended June 30, 2017 (total provision for loan losses for the three and six months ended June 30, 2017 was $7,023,000 and $11,330,000, respectively). There were $758,000 and $2.0 million in charge-offs for loans acquired during the three and six months ended June 30, 2017, respectively, resulting in an ending balance in the allowance related to loans acquired of $391,000.


(4)	Allowance for loan losses at June 30, 2017, March 31, 2017 and December 31, 2016 includes $391,000, $435,000 and $954,000, allowance for loans acquired, respectively, (not shown in the table above). The total allowance for loan losses at June 30, 2017, March 31, 2017 and December 31, 2016 was $41,770,000, $38,300,000 and $37,240,000, respectively.


(5)	Allowance for loan losses at December 31, 2017 includes $418,000 allowance for loans acquired (not shown in the table above). The total allowance for loan losses at December 31, 2017 was $42,086,000.